• The Reserve Bank of Zimbabwe (RBZ) has opened subscriptions for new 30, 60 and 90-day ZiG Denominated Term Deposit Facility Bills offering yields of 8%, 9% and 11% per annum respectively.
• The instrument is available to banks, building societies, deposit-taking MFIs, POSB, corporates and individuals, with retail investors able to participate from as little as ZiG100,000.
• The success or failure of the programme will largely depend on whether investors believe the ZiG can remain broadly stable over the next three months.

Harare-The Reserve Bank of Zimbabwe (RBZ) has officially opened subscriptions for the second offer of its ZiG Denominated Term Deposit Facility Bills (ZiGTDF), a new monetary policy instrument designed to absorb excess liquidity, strengthen reserve money management and support exchange rate stability.

The latest offer follows the successful inaugural issuance of the 90-day ZiGTDF on 4 June 2026, marking another step in the RBZ's efforts to deepen Zimbabwe's domestic capital markets and establish a functioning ZiG-denominated yield curve.According to the prospectus, subscriptions opened on Monday, 8 June 2026 at 08:00 hours and will close on Wednesday, 10 June 2026 at 14:00 hours, with settlement scheduled for Thursday, 11 June 2026.

The instrument is available to:

• Banks
• Building Societies
• Deposit-Taking Microfinance Institutions (MFIs)
• POSB
• Corporates
• Individual Investors

The bills are being issued as part of the RBZ's Open Market Operations (OMO) framework, making them one of the central bank's primary tools for managing liquidity conditions within the financial system.

The ZiGTDF offers investors three maturity options:

The minimum subscription levels are:

The instrument also carries several features that make it attractive within the financial sector:

• Prescribed Asset Status
• Liquid Asset Status
• Acceptable as collateral for accommodation
• Redeemable at RBZ upon maturity
• Tradable

These characteristics mean the bills serve not only as investment instruments but also as liquidity management tools for financial institutions.The primary objective is not simply to offer investors a return.The RBZ is effectively attempting to remove excess ZiG liquidity from circulation and lock it into interest-bearing instruments. This process, commonly referred to as liquidity sterilisation, reduces the amount of money available for speculative activity and can help stabilise exchange rates.

For much of Zimbabwe's modern monetary history, excess liquidity has often found its way into the foreign exchange market, placing pressure on the domestic currency.By offering investors a positive return in local currency, the central bank is creating an alternative destination for funds that might otherwise be converted into US dollars.

The initiative also aligns with the broader policy direction outlined in the 2026 Monetary Policy Statement, which emphasises:

• Positive real interest rates
• Reserve money discipline
• Exchange rate stability
• Market-based liquidity management

In essence, the RBZ is attempting to encourage investors to hold ZiG assets rather than immediately seeking refuge in foreign currency.The attractiveness of the ZiGTDF ultimately depends less on the nominal interest rate and more on the future trajectory of the ZiG exchange rate.

Since the beginning of 2026, the official exchange rate has moved from approximately ZiG25.92 per US dollar to around ZiG26.85 per US dollar, representing a depreciation of just 3.6% over six months.Meanwhile, parallel market rates have largely traded within a relatively narrow range of ZiG30 to ZiG34 per US dollar throughout the year.

Notably:

• The parallel market reached approximately ZiG42 per US dollar in November 2024.
• The official exchange rate reached approximately ZiG28.68 per US dollar in October 2024.

Current exchange rate levels therefore remain significantly stronger than the weakest points observed since the introduction of the ZiG.Whether that stability is driven by market confidence, tight monetary conditions, foreign exchange interventions or a combination of factors is open to debate.What matters for investors is that the market currently appears willing to price in a relatively stable exchange rate environment over short-term horizons.

What Could an Individual Investor Earn?

For retail investors, the minimum subscription amount is ZiG100,000. This equates to around US$3,724.

Expected returns are as follows:

30-Day Bill (8% p.a.)

• Initial Investment: ZiG100,000
• Interest Earned: ZiG658
• Maturity Value: ZiG100,658

60-Day Bill (9% p.a.)

• Initial Investment: ZiG100,000
• Interest Earned: ZiG1,479
• Maturity Value: ZiG101,479

90-Day Bill (11% p.a.)

• Initial Investment: ZiG100,000
• Interest Earned: ZiG2,712
• Maturity Value: ZiG102,712

Converted at today's official exchange rate, the gains are roughly:

The 90-day instrument therefore offers the highest absolute return among the available tenors.A useful way to analyse the opportunity is through the break-even exchange rate.For the 90-day bill, an investor earns approximately 2.71% over the investment period.This means the ZiG could depreciate by around 2.7% during the next three months before the investor's USD value is fully eroded.Starting from today's official rate of approximately , the break-even level is around ZiG27.58 per US dollar at maturity.If the exchange rate remains stronger than this level, the investor retains a positive return in US dollar terms.If it weakens beyond that threshold, gains begin to disappear.This calculation effectively converts the investment decision into a view on exchange rate stability.

Why Banks and Corporates May Be Interested

While retail investors may focus on the yield, banks and corporates are likely to view the instrument differently.

For banks, the bills offer:

• A low-risk interest-bearing asset.
• A tool for liquidity management.
• Compliance benefits due to prescribed asset status.
• Additional collateral for central bank accommodation.

For corporates, the bills present an opportunity to temporarily park idle ZiG balances while earning a return rather than leaving funds in non-interest-bearing accounts.Many businesses hold substantial working capital balances that may not be required immediately. The ZiGTDF potentially allows these firms to generate additional income while preserving liquidity through relatively short maturities.

Ultimately, the significance of the ZiGTDF extends beyond the yields on offer.The instrument represents one of the clearest market-based tests yet of investor confidence in the ZiG.If subscriptions are strong across banks, corporates and individuals, it would suggest investors are increasingly willing to hold local currency assets for longer periods. Such an outcome would reinforce the RBZ's broader objective of deepening the domestic financial market and strengthening confidence in the currency.

If uptake proves weak, however, it could indicate lingering concerns about future exchange rate movements despite the relative stability observed so far in 2026.For now, investors face a relatively straightforward question: Will the ZiG remain broadly stable over the next 30, 60 or 90 days? The market's response over the coming days will provide one of the strongest indicators yet of confidence in Zimbabwe's evolving monetary framework.